Background of Nike
Nike is an American multinational corporation that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services.
The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area.
It is the world’s largest supplier of athletic shoes and apparel and a major manufacturer of sports equipment.
The company has a history dating back to 1964, when it was founded by University of Oregon track athlete Phil Knight and his coach, Bill Bowerman, as Blue Ribbon Sports.
In 1976, the company hired John Brown and Partners, based in Seattle, as its first advertising agency. The following year, the agency created the first “brand ad” for Nike, called “There is no finish line”, in which no Nike product was shown.
By 1980, Nike had attained a 50% market share in the U.S. athletic shoe market, and the company went public in December of that year.
Throughout the 1980s, Nike expanded its product portfolio to encompass many sports and regions throughout the world. In 1990, Nike moved into its eight-building World Headquarters campus in Beaverton, Oregon. The first Nike retail store, dubbed Niketown, opened in downtown Portland in November of that year.
Nike has acquired and sold several apparel and footwear companies over the course of its history. Its first acquisition was the upscale footwear company Cole Haan in 1988, followed by the purchase of Bauer Hockey in 1994.
In 2002, Nike bought surf apparel company Hurley International from founder Bob Hurley. In the following year, Nike paid US$ 309 million to acquire sneaker company Converse.
The company acquired Starter in 2004 and soccer uniform maker Umbro in 2007.
In order to refocus its business lines, Nike began divesting of some of its subsidiaries in the 2000s. It sold Starter in 2007 and Bauer Hockey in 2008. The company sold Umbro in 2012 and Cole Haan in 2013. As of 2025, Nike owns only one subsidiary, namely Converse Inc.
Nike Shares Growth Driver
Nike excels in creating innovative products, leading with a digital advantage, and inspiring through an iconic brand.
The company focuses its Nike Brand product offerings in six key categories: Running, NIKE Basketball, the Jordan Brand, Football (Soccer), Training and Sportswear (our sports-inspired lifestyle products).
The company also markets products designed for kids, as well as for other athletic and recreational uses such as American football, baseball, cricket, golf, lacrosse, skateboarding, tennis, volleyball, walking, wrestling and other outdoor activities.
Because Nike is a consumer products company, the relative popularity of various sports and fitness activities and changing design trends affect the demand for its products.
The company must, therefore, respond to trends and shifts in consumer preferences by adjusting the mix of existing product offerings, developing new products, styles and categories and influencing sports and fitness preferences through extensive marketing.
Failure to respond in a timely and adequate manner could have a material adverse effect on the company’s sales and profitability, which is a continuing risk.
As such, Nike has managed to capitalize on clever marketing strategies and strategic sponsorships in order to promote the demand for its products, concurrently growing value for all of its stakeholders.
As a result, the company has secured a spot as the world’s most valuable apparel brand, though what the effects of the coronavirus pandemic might be remains to be seen.
The value of the e-commerce giant’s brand soared 17.5% to a record $220.8 billion in 2019 – the first brand to top $200 billion.
A brand’s value is the economic benefit it would achieve if it was licenced in the open market. The index also includes brand strength, which is calculated as the efficacy of a brand’s performance relative to its peers.
Nike has largely managed to maintain a resilient response to the economic effects of the pandemic, relying on its marketing expertise to create a new campaign that highlights its brand purpose, as well as its wider aim of inspiring people through the power of sport.
The campaign’s latest ad, ‘You Can’t Stop Us’, includes images and video footage of people working out in their homes, be it in their kitchens, bathrooms, bedrooms, or basements. As well as a few famous faces, including basketball star LeBron James and volleyballer Sara Hughes, the ad features lesser-known and unknown fitness fans to reinforce the sense that we are all in it together.
The campaign is particularly clever in how it reinforces Nike’s core purpose; still managing to inspire consumers even in the midst of such unusual and difficult circumstances.
Such compelling marketing will drive consumer demand towards Nike’s e-commerce sector, as home workouts become more popular and online shopping becomes an ever more dominant sales trend.
Nike Investor Tip
Nike trades on the New York Stock Exchange (NYSE) where investors can buy shares under the stock symbol –NKE.
Data from the company’s 2025 financial analysis of its fiscal third quarter results shows revenues increased to $ 10.1 billion in the third quarter, up 5 percent on a reported basis and up 7 percent on a currency-neutral basis, driven by 13 percent currency-neutral growth in NIKE Direct with digital growth of 36 percent and strong growth across EMEA, APLA and North America, offset by the impact of COVID-19 on its business in Greater China.
Digital sales in Greater China increased more than 30 percent while brick and mortar retail sales were impacted by temporary store closures related to COVID-19.
Operations in Greater China were materially impacted as a result of COVID-19. In the third quarter, on a currency-neutral basis, Greater China revenues were down 4 percent following 22 consecutive quarters of double-digit growth.
However, during the first two months of the third quarter, Greater China’s revenue grew 2 strong double digits, offset by the impacts of COVID-19 beginning in late January. At the peak in February, roughly 75 percent of NIKE-owned and partner doors in Greater China were closed with others operating on reduced hours.
The company’s Brand leadership and business momentum have been stronger than ever and unrivalled around the world, with the company’s strong results a testament to its deep consumer connections, compelling product innovation and agile teams around the world.
As such, the company’s powerful combination of compelling marketing and a high-value brand portfolio have allowed it to deliver a strong performance with solid dividends and a rising share price for investors who choose to purchase shares today, securing a strong buy-in in 2025 and in the future.
Sector
Consumer Discretionary
Industry
Apparel and Textile Products
Sub Industry
Apparel, Footwear and Accessory Design
How to buy Nike Shares
1. Click on the BUY THIS SHARE button.
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FAQ
- Can I buy Nike shares in South Africa?
Yes, you can.
- How to buy Nike shares
By simply opening a free account on SA Shares, or by clicking the “Buy this Share” button to get started.
- What is the current share price?
By clicking on the link provided above, you can view the real-time Nike share price on the platform.
- Is Nike a good share to buy?
Yes, I has delivered impressive growth despite the economic contraction resulting from the coronavirus, owed largely to its compelling marketing campaign and sustained demand from the e-commerce sector.
As the most valuable apparel company in the world, Nike’s deep consumer loyalty coupled with its clever response to the coronavirus crisis is set to deliver growth for all of its shareholders going forward.
- Can I buy Nike CFD through SA Shares?
Yes, you can.
- Can I buy Nike shares in South Africa?